Which of the following statements BEST describes the need for global accounting standards?
A) The complexity of the global market increases the risk of unethical accounting behavior by allowing accountants to choose which national GAAP standards are best for their clients.
B) The rise of the global market increases the risk of money laundering and offshore accounting.
C) The rise of the global market increases the risk of fraudulent business transactions across borders.
D) The rise of the global market increases the risk of international dumping and profit-skimming.
E) The rise of the global market increases the risk of the creation of dummy companies and accounts for the purpose of dumping toxic assets.

Question

Quizplus · Accepted Answer

The complexity of the global market increases the risk of unethical accounting behavior as national accounting standards can vary significantly, allowing accountants to choose the standards that best suit their clients. This can result in a lack of transparency and consistency, which can create confusion, increase risk, and undermine investor confidence in financial reporting. Global accounting standards, such as International Financial Reporting Standards (IFRS), promote transparency and consistency by providing a common set of rules that companies can follow in their reporting, making it easier for investors to compare financial information across borders.

Which of the Following Statements BEST Describes the Need for Global